2024 Predicts steep drop in US farm income
USAgNet - 02/15/2024
Farmers across the United States are bracing for what could be the sharpest fall in net farm income ever recorded. The U.S. Department of Agriculture has released a report indicating a near $40 billion, or 25.5%, decline in farm earnings for 2024 compared to the previous year.
This downturn is attributed mainly to soaring production costs, which are expected to rise by 4% to $455 billion, marking the sixth consecutive year of increases. Particularly, expenses in marketing, storage, transportation, labor, and pesticides are hitting record highs.
Cash receipts from crops and livestock are also expected to plummet by $21 billion, with corn, soybeans, and hay experiencing the most significant drops.
This decrease in revenue is coupled with a reduction in direct government payments to farmers, which have been declining since the peak of the COVID-19 pandemic in 2020.
The situation is underscored by a Purdue University report, which echoes concerns over falling farm income due to lower crop and livestock prices alongside rising input costs. This double-edged sword has farmers and economists alike calling for careful consideration in the drafting of the next farm bill.
It's a critical juncture for U.S. agriculture, highlighting the need for policies that will support the sector's sustainability and resilience in the face of financial adversity.
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